Use the Following to Answer Questions: Table: Competitive Firm 2

question 53

Multiple Choice

Use the following to answer questions: Table: Competitive Firm 2 $$\begin{array} { c c c } \hline \text { Quantity (Units) } & \text { Total Revenue (\$) } & \text { Total Cost (\$) } \\\hline 0 & 0 & 30 \\1 & 80 & 50 \\2 & 160 & 80 \\3 & 240 & 120 \\4 & 320 & 170 \\5 & 400 & 230 \\6 & 480 & 300 \\7 & 560 & 380 \\8 & 640 & 470 \\\hline\end{array}$$
-(Table: Competitive Firm 2) Refer to the table that shows revenue and cost schedules for a competitive firm. At the profit-maximizing quantity, which of the following is TRUE?
I. MR = MC
II. Producer surplus is maximized.
III. Profits are equal to $180.

• A) I only
• B) I and II only
• C) I and III only
• D) I, II, and III

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Definitions:

Pleasure

A feeling of happiness, satisfaction, or enjoyment derived from an activity or experience.

Angel Group

A collective of individual investors who pool their resources to invest in start-up businesses.

Pitch

A presentation or proposal designed to persuade or inform, often used in business and marketing contexts.

Collaborate

To work jointly with others or together especially in an intellectual endeavor, often leading to shared goals or projects.